Signed PSA on first BRRR deal, bought off Hubzu

[Dennis Wasilewski]

Been listening to the podcast for a year but in March I decided to get serious. Started calling brokers & analyzing deals more closely. In April I went under contract on a 6-unit in York, Pa with under market rents & value-add, that I close 5/31. Super excited about the deal but also realized how quickly my capital will be depleted buying this way. Really helped me to appreciate the BRRRR strategy... despite my dislike for the moniker. :) Which brings me to the hunt for a distressed multi family in an decent neighborhood. I saw many candidates, most very terrible, until finally found a bank owned property up for auction. Didn’t actually realize it was on Hubzu until my agent pointed it out to me (I saw it via a Redfin listing with the reserve price listed). Bought at $71k plus 5% buyers premium. Estimating $7,500-10,000 in repairs, less if I do some work myself or bring in a cousin who wants to get into flipping. ARV (based on recent comps) is $105-110k... could be more but I’m trying to be conservative. Estimating $1500-1800 for rents. I will be buying & fixing the property using my heloc at 3.74% with interest only payments. For a first BRRR in a town I was looking to buy in anyway, my goal is to be in less than $10k to this property after refi cash out. https://www.hubzu.com/property/9007441102928-558-Kohn-St-Norristown-PA-19401 1st floor 1bed/1bath- https://youtu.be/jLyDFAJNlsk - I mention two furnaces but misspoke... 1st floor steam heat removed & it’s electric baseboard. 2nd & 3rd floor - https://youtu.be/WU0qzR4-LqA Let me know how what you think!